Financing Activity Also Discussed At NYC Conference

Spirit AeroSystems Holdings president and Chief Executive Officer Tom Gentile announced at the Bernstein 34th Annual Strategic Decisions Conference that the 737 recovery is tracking to plan.

"We are seeing positive impacts from our recovery efforts and expect to be fully recovered to schedule by mid-year," said Gentile.

In addition, the completion of $1.3 billion of bond financing on May 30, 2018, was discussed. The new bonds were part of a broader plan to take advantage of the current interest rate environment to lower the company's average cost of borrowing and extend debt maturities. The use of proceeds from the bond issuance, combined with borrowings under the company's revolving credit facility and term loan, will be used to fund the acquisition of Asco Industries, repurchase the company's bonds due in 2022, pay down a portion of the company's term loan, execute an accelerated share repurchase program (ASR), and for financing and acquisition-related costs.

"Our new debt structure will place our leverage in-line with industry peers while leaving us comfortably within our desired investment grade rating," Gentile commented.

In conjunction with the debt offering completion, the $725 million ASR was initiated on May 30, 2018.

"This ASR encompasses all of the planned share repurchases for the year plus an incremental amount to take advantage of our undervalued shares and demonstrate the confidence we have in our operational outlook," remarked Gentile.

(Source: Spirit AeroSystems news release)

FMI; www.spiritaero.com